BSE Sensex and Nifty ended the first day of the new fiscal on a positive note, rising over one per cent.
The RBI policy and earnings season could be the next trigger for the market. Image: Reuters
BSE Sensex and Nifty ended the first day of the new fiscal on a positive note, rising over one per cent. On the day of the expiry of the weekly F&O contracts, the 30-share Sensex soared 521 points to 50,030, while the broader Nifty 50 index settled at 14,867, up 177 points. Markets will remain shut on Friday, on the account of Good Friday. Market breadth remained firmly in the favour of the bulls as 2,137 stocks advanced while 752 declined. A total of 154 scrips remained unchanged. Broader markets outperformed the equity benchmarks, with the S&P BSE Midcap index rising 1.66 per cent or 335 points to settle at 20,516.40. The S&P BSE Smallcap index surged 2.05 per cent or 422.36 points to finish trade at 21,071.69.
Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities
Indian markets pulled back swiftly this week even though it was a short trading week. The Nifty-50 added 2.5% this week while the Nifty Mid Cap 100 Index and the BSE Small Cap Index both gained 3.8% each. Metal stocks have been the biggest gainers this week with BSE Metal Index climbing by 8.5%. Apart from metals there has been a clear shift towards high quality stocks as it is visible in the gains of Nifty-50 stock basket. Select FMCG IT and pharma stocks also saw gains of more than 4% this week. Amongst the metal stocks JSW Steel is up ~15% this week followed by Tata Steel (up ~13%) and Hindalco (up 7%). The rally this week has been broad based with nearly 49 stocks from Nifty-50 are showing positive gains. US markets have remained flattish this week because of further rise in bond yields. The Nifty-50 has once again bounced above the 50 DMA which is a good sign. There is a golden crossover in the Nifty Mid Cap 100 Index wherein the 50 WMA has gone above the 200 WMA which signals long term bullish trend. Going forward the RBI policy and earnings season could be the next trigger for the market. The start of FY22 has been very good and April month could likely see more action with the start of the earnings season.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Once again the Index has nudged closer to the important level of 14950. Due to a trading holiday tomorrow, we would need to evaluate this next week: If we can cross 14950, we should be able to resume the uptrend and head towards 15300. If we resist and take a U turn again, we will be sideways and if we break 14500, we will revisit the recent lows of 14200-14250. Hence, we are at a crucial juncture from where a trading opportunity on the upside or downside may emerge.
Markets were buoyant today on the back of the American jobs plan and the huge federal spend ignited metal stocks today. Afternoon trade saw strong investor interest in Banks, Metals & Tyres as GST record collections of a 27% yoy growth for March perked up sentiments despite a long weekend as India rolled out a larger vaccine program today.
Markets across the globe were boosted by Biden’s $2.3tn spending plan. The rally in the domestic market was led by positive cues from global peers, strong buying in metal stocks and recovery in banking sector. Metal stocks outshined other sectorial indices on reports of possible price hike. PSU banks were also in focus today as the government announced capital infusion of Rs.14500Cr in 4 PSBs.
Ajit Mishra, VP – Research, Religare Broking Ltd
Markets started the new financial year on a robust note led by optimism in the global markets. The announcement by US President Joe Biden to invest USD 2.3 trillion in infrastructure boosted sentiments. Initially the benchmark opened gap up but gains fizzled out gradually as the day progressed. However in the second half healthy buying amongst the sectors such as metals, banks, auto supported markets to steadily inch higher. Markets are likely to take cues from global peers as stimulus package announcement in the US last night led to renewed buying interest in the global markets. In the near term, positive bias is expected to continue however, rising COVID cases in India would remain a key concern. As Q4 earnings season is approaching, Investors focus will shift to earnings announcements and management commentary.